• Retail Distribution Rate: The combination of the per kWh tariff rate and the flat customer charge supports the construction, operation, and maintenance of the electric distribution system and is typically about 20% of a customer’s bill.

• Purchase Power Adjustment Cost: This is a per kWh rate that is calculated monthly based on the total wholesale cost vs. the total retail energy delivered to the customer.

• Taxes and Surcharges: The State of Maryland requires the collection of certain taxes and surcharges which are paid directly to the State.  These charges include the Universal Service Program, Franchise Tax, Environmental Surcharge, and Sales Tax.

What is Purchase Power Cost Adjustment (PPCA) Rate? 

• HLD purchases electricity from a wholesale energy supplier on a monthly basis through a full requirements contract.  This cost is passed on to customers without profit or mark-up.
• The Maryland Public Service Commission (PSC) grants municipal electric utilities the authority to recover the full amount of the cost variances from its customers, who are the ultimate consumer of electricity.

Click here to view PPCA rate.

Have a question or concern? Please contact Customer Service at 301-790-4160